For those working in the Marketing industry, the concept of CPM and Facebook CPM is no longer strange. These are important indicators in Facebook advertising reports, helping to evaluate whether advertising bids are high or low. This article, Optimal Agency will help you better understand Facebook CPM and how to reduce CPM for Facebook advertising campaigns on this platform. Let’s follow along!
| ☑️ Qualitiy account 💯, no worries about getting lock | ☑️ Immediate use, unlimited spending |
| ☑️ Best rental price | ☑️ Create campaign freely |
| ☑️ Many offers | ☑️ Optimized ads campaigns |
| ☑️ Consulting fast approved ads | ☑️ Safe, secure, effective and affordable |
| ☑️ Diverse services, accounts | ☑️ 24/7 technical support |
Learn about CPM on Facebook
Facebook CPM (Cost Per Mile Facebook) is a form of payment based on the number of ad impressions on the Facebook platform, regardless of whether users interact with the ad or not. This is an important index used to evaluate the profitability of advertising campaigns and to compare the effectiveness between different publishers and advertising campaigns.
How to calculate CPM on Facebook: CPM is calculated by the total amount spent on the advertising campaign divided by the number of impressions, then multiplied by 1,000. For example, if you spend 100,000 VND and get 10,000 impressions, your CPM will be 10,000 VND. The specific formula is:
CPM = (100,000 VND/10,000)*1000 = 10,000 VND.
Importance of CPM: CPM is considered an important metric in Facebook ad reporting, as it indicates how high or low your ad bid is. The lower the CPM, the cheaper your advertising costs, which is beneficial for your advertising budget. Choosing CPM is a reasonable strategy if your goal is to promote your business or company’s brand quickly to a large number of users.
Things to note when using CPM:
- Number of visits: Facebook has a very large user base and each time a user moves from one page to another or refreshes the page, a new impression is counted. This may increase impressions but does not guarantee increased engagement or conversions.
- Risk of losing budget: CPM-based display ads can cost you your entire budget without getting any clicks to your website. This can reduce campaign effectiveness without careful monitoring and optimization.
Therefore, to ensure effectiveness when using CPM display ads on Facebook, you need to research and learn carefully. Consider your campaign goals and target audience, and continuously monitor and adjust your campaigns to optimize costs and achieve desired results.
Main factors affecting Facebook CPM index
What Facebook wants from advertisers is to bring the right attractive advertising content to the right users. To attract the users you want to target, you need to pay attention to the following Facebook CPM factors:
- Target audience: Choose the right campaign target audience based on your advertising purpose. This helps ensure your ads reach the users most likely to be interested and engaged.
- Advertising timing: Schedule your campaign to run at the appropriate time. For example, campaigns that run during the holiday season or major sporting events may cost more than other times of the year when traffic is lower.
- Ad placement: Choose where your ad appears, such as on Facebook or Instagram. Each different ad position will have a different CPM, so choosing the right position is very important.
- Frequency cap: Set the maximum number of times a user will see your ad. This helps avoid annoying users and increases the effectiveness of ads.
- Content type: The creative’s content format determines where and how the ad is received. For example, Canvas ads are only delivered on mobile devices, so if you target mobile users, this format can be very effective.
- Objectives and optimization: Optimize for video views or mobile app installs. Keep in mind that reach and frequency buying optimizes for reach first, then your selected goal.
- Budget: Determine the maximum amount you’re willing to spend on a campaign. A reasonable budget will help maintain a long-term and effective campaign.
- Market demand: Assess market demand for your target audience at the time of booking your campaign. This helps you make better decisions about when and how to advertise.
- Market supply: How ready and active your target audience is on Facebook and Instagram. This helps ensure that your ads are seen by the right users at the right time.
- Your duplicate campaigns: If you’re running multiple campaigns at the same time and targeting the same audience, this can increase your advertising costs. Therefore, you need to manage campaigns effectively to avoid wasting your budget.
- Content quality and relevance: The negative and positive feedback your app received in the last 90 days also affects CPM. High-quality and relevant content will help reduce advertising costs and increase campaign effectiveness.
By paying attention to these factors, you can optimize CPM and ensure your Facebook ad campaigns achieve the highest effectiveness.
How to reduce CPM for Facebook advertising campaigns
To be able to reduce CPM for your Facebook advertising campaign, you can refer to the tips that Optimal shares specifically as follows:
Only run ads on videos with good interaction
This seems simple but many people still ignore it. We often “focus” on uploading videos to Facebook without taking the time to do some split testing first. To optimize the effectiveness of your promotional videos, create several videos or different versions of one video (at least 3), and do some split testing to see which ones get a good response. However, before spending money on ads, place them on free channels. For example, you can:
- Upload videos as usual to Facebook
- Place them on your website or blog page
- Post to other social media channels like Instagram, YouTube, or Twitter
Next, let’s look at some key metrics to evaluate the effectiveness of your videos:
- Play” click rate: Measures the attractiveness of video thumbnails and titles.
- Average view duration: Evaluate the video’s ability to retain viewers.
- Engagement: Includes likes, comments, shares, and other interactive actions.
- Number of leads generated through each video: Number of people interested or registered for information via video.
- Video conversions: Measure the effectiveness of video in driving desired actions such as purchases or registrations.
The chart below illustrates different methods for measuring the effectiveness of a video:
- Click-through rate: Evaluate the attractiveness of the video and its ability to stimulate viewers to take action.
- Actual product sales: Measure the number of products sold through videos.
- Traffic to business website: Measure the number of visitors converted into website visits.
- Brand recognition or brand recall: Assessing the level of brand recognition and memory through video.
- Video completion rate: Measures the attractiveness and value of the content.
- Target audience reached: Number of people in the target audience who viewed the video.
- Social media interactions: Includes likes, shares, and comments.
- Video watch time: Total time the viewer spent watching the video.
- Number of video views: Total number of times the video was viewed.
- Purchase intent: Measures how motivated viewers are to purchase after watching a video.
Before you spend a fortune on Facebook video advertising, test it first and see which videos your target audience engages with the most. That way, you can be more confident when deploying ads and thereby significantly reduce CPM.
Video length will greatly affect advertising results
The company Wistia has conducted in-depth studies on the relationship between video length and engagement. They studied 564,710 videos with more than 1.3 billion plays and came up with the following results. The video’s engagement level is quite stable up to the 2-minute mark. However, after the 2-minute mark, engagement levels dropped significantly until the 6-minute mark. At this point, the amount of interaction remained stable for up to 12 minutes. Therefore, you should avoid making Facebook advertising videos longer than 2 minutes. If you exceed this limit, you may not get good results and will only waste your budget. Wistia also offers another interesting perspective:
Consistent engagement up to 2 minutes means a 90-second video will capture the same viewer attention as a 30-second video. This is important information and can be implemented into an action plan for those using video for advertising. If you’re making short videos, there’s no need to worry about the difference between seconds. Just keep the length under 2 minutes to maximize engagement and reduce CPMs. In case you have to make a longer video, keep the length between 6-12 minutes, because according to the chart, this is the second most stable area of engagement before it continues to decline and videos longer than 12 Minutes spent running ads are almost meaningless.
Advertise authentically and naturally
Here’s something you need to know before implementing Facebook Ads: most people are not in the buying mindset when they open Facebook. They are simply checking to see what’s new around, what their friends and family are doing. They don’t have the thought that they will open Facebook to make purchases, this only happens when they visit e-commerce sites. In this case, their purchase intention is very low. What you should do is promote your product, service, or brand without making it look like an advertisement. You need to be sophisticated and comfortable. How can you get your message across without making the customer feel like you’re being too pushy or trying to sell something? Here are some suggestions:
- Incorporate Humor: Humor is a powerful tool to attract and retain viewers. A bit of humor can make your video more memorable and shareable.
- Use Storytelling: Storytelling is an excellent way to connect with viewers. An interesting, touching, or meaningful story can grab attention and create an emotional connection with your brand.
- Surprise Them: Unexpected elements can make your video stand out. A twist in the story or an unforeseen ending will make your video more engaging.
- Teach Something: Providing new knowledge or skills to viewers helps them remember you, and appreciate your brand as a valuable information source.
- Offer Valuable Insights: Valuable information, especially useful tips and guides, will make viewers feel their time is well spent watching your video.
In other words, avoid hard-selling pitches that pressure viewers to buy. People dislike this approach, and it only increases your CPM. Instead, make your video entertaining and try to build a genuine connection with them. When you achieve this, viewers will more readily accept your advertising message, and the likelihood of conversion will be higher.
In this article, Optimal Agency has listed detailed content for you. We hope the information we shared can help you understand the concept and factors influencing Facebook CPM and take steps to reduce CPM for your ad campaigns on this platform successfully. In addition, we will answer all customers’ questions related to how to make videos to run ads on Facebook.
Please see more:
- How to calculate Google Ads CPC accurately and optimize in 2024
- How to optimize CPC when running Google ads
- Top 5 ways to run Google ads for free in 2024
Frequently Asked Questions
To evaluate whether CPC (Cost Per Click) is good or not, you need to consider many factors such as industry, target audience, and campaign goals. However, a good CPC is usually priced lower than the industry average and helps optimize advertising budgets. For example, in some industries like technology, the average CPC can range from 2-3 USD, while for retail, this number can be lower, around 1-2 USD. A good CPC is a reasonable cost while still achieving a high conversion rate, helping you reach the right target customers effectively and cost-effectively.
To evaluate whether CPM (Cost Per Mile) on Facebook is good or not, you need to consider the industry, target audience, and campaign goals. A good CPM is usually a price lower than the industry average, helping to optimize advertising budgets. For example, the average CPM on Facebook can range from $5 – 10, but in some highly competitive industries, the CPM can be higher. A good CPM is a reasonable cost while still achieving a high number of impressions, helping you reach the right target audience effectively and cost-effectively.
